The Market Analysis

The Market Analysis for Communication Services Sector

In this article, the Communication Services Sector from Yahoo! Finance is used, and we analyze the current top tech companies' stock prices.

Table of contentens

Symbol Name Symbol Name Symbol Name
AAPL Apple Inc. NVDA NVIDIA Corporation INTU Intuit Inc.
MSFT Microsoft Corporation ACN Accenture plc VMW VMware, Inc.
TSM Taiwan Semiconductor Manufacturing Company Limited AVGO Broadcom Inc. AMAT Applied Materials, Inc.
INTC Intel Corporation IBM International Business Machines Corporation MU Micron Technology, Inc.
CSCO Cisco Systems, Inc. ASML ASML Holding N.V. NOW ServiceNow, Inc.
ORCL Oracle Corporation TXN Texas Instruments Incorporated UBER Uber Technologies, Inc.
SAP SAP SE QCOM QUALCOMM Incorporated AMD Advanced Micro Devices, Inc.
ADBE Adobe Inc. FIS Fidelity National Information Services, Inc.
CRM salesforce.com, inc. SNE Sony Corporation

The data is collected from a years ago until now.

Collecting data from Yahoo Finance!, and creating moving Averages for 10, 20 and 60 day periods of time.

Displaying today's data only:

Consider AAPL for example. We hAve,

Stock Prices Fluctuations

The following table shows the Average values for all columns of the Data.

The Moving Average of the Stocks

The Daily Return Average of a Stock

Daily return can be calculated using the percentage change of the adjusted closing price.

The Correlation Between Daily Returns of Different Stocks

First, we need to create a new data frame by reading the Adj Close column from all stock data under study. We hAve,

The returns can be analyzed using the percentage change from the adj Close.

The following graphs show the correlation between different stocks.

Now, we can use the pairplot tool to visualize all.

Nonetheless, the correlation matrix and plot are always convenient to see numerical values for correlations.

Here, darker shades of blue represent a higher correlation.

We can find the quantile MSFT.

Predicting Future Behaviors

To predict future behaviors, we can implement the Monte Carlo method (also see this [2] and this [3].

Defining a Monte Carlo function fo the Stock price.

Apple Inc.

The frequencies of different outcomes simulated form a Bell curve. The most likely return is in the middle of the curve. This means there is an equal chance that the actual return will be higher or lower than that value.

See more details about Value at Risk (VaR) [4].

Microsoft Corporation

Advanced Micro Devices, Inc.


References

  1. Yahoo Finance
  2. Mathematical Foundations of Monte Carlo Methods
  3. Monte Carlo Simulation
  4. An Introduction to Value at Risk (VAR)
  5. Bell Curve